CRA confirms that charitable credits do not reduce an individual’s TOSI

CRA confirmed that the tax on split income cannot be reduced by s. 118.3 charitable credits. This could be a concern where, for example, a specified individual’s income was mostly split income in the form of a taxable capital gain arising on a sale whose proceeds were gifted to the charity.

Neal Armstrong. Summary of 26 November 2020 STEP Roundtable, Q.8 under s. 120.4(3).